US stock markets extended gains for a second consecutive week, with the S&P 500 rising 0.4% to close at 7,572.36 points, while the Nasdaq 100 gained 0.3% to 26,273.21 points. The strong performance was driven by gains in materials and communication services sectors, with the S&P 500 now positioned just short of record highs. Despite the positive momentum, market breadth remains concerning as more than half of S&P 500 members are trading at least 20% below their own 52-week highs, a washed-out reading typically seen at market lows rather than peaks. This suggests that while the index is within striking distance of records, the underlying breadth indicates potential weakness beneath the surface, being concealed by a few mega-caps. The Dow Jones Industrial Average rose 0.28% to 52,635.69 points during the latest session.
SK Hynix's blockbuster Nasdaq debut continues to dominate market attention, with the South Korean memory chipmaker's shares opening 14% above its offering price at $170, significantly outperforming expectations. The South Korean memory chipmaker raised over $26 billion by selling American Depositary Receipts priced at $149 each, making it the largest-ever first-time listing by a foreign company on Wall Street. The strong performance was driven by SK Hynix's blockbuster Nasdaq debut, which opened 14% above its offering price at $170, significantly outperforming expectations. Salesforce Inc. and Microsoft Corp. shares were up nearly 2%, while Nike Inc., JPMorgan Chase & Co. and Amazon.com Inc. were up over 1%. On the downside, UnitedHealth Group Inc. and McDonald's Corp were down nearly 1%. The focus remains on chipmaking and technology stocks during Friday's market session on Wall Street as the artificial intelligence trade returned to the spotlight after SK Hynix's strong debut.
US markets are on track to end the week with gains, led by technology stocks, with the S&P 500 headed for a weekly rise of nearly 1% while the Nasdaq 100 is set to gain more than 1%. In contrast, the Dow Jones Industrial Average is marginally lower for the week, down less than 1%. Wall Street advanced on Thursday after oil prices eased, following US President Donald Trump's comments that Iran had reached out to negotiate a deal. According to an administration official, the US and Iran will continue technical discussions despite recent military strikes, with Washington remaining committed to pursuing a diplomatic resolution to the Middle East conflict. Despite the muted opening, the major indexes remain on track for a mixed week, with the Nasdaq Composite poised to gain about 1.5% for the week, while the S&P 500 is set to advance around 0.8%. The Dow Jones Industrial Average, however, is down roughly 0.8% over the same period.
Semiconductor stocks traded higher ahead of South Korean memory chipmaker SK Hynix's Nasdaq debut, with chipmakers among the biggest beneficiaries of this year's AI-driven rally. Memory stocks are continuing to be the "sharp end of the stick" in semiconductors, displaying great volatility in both directions as the sector experiences renewed strength. Memory stocks are up 8.3% today, though still down 4.8% in a week, +7.5% in a month, and +136% year-to-date. The artificial intelligence trade returned to the spotlight after SK Hynix opened 14% above its offering price at $170 in a high-profile U.S. listing, fueling optimism about memory-chip makers. While the supply shortage and pricing power have driven earnings and margins to new highs, some investors remain concerned that new capacity being built will come online as demand cools. Semiconductor stocks attracted strong buying interest in pre-market trade today after SK Hynix Inc. received robust demand for its offering of American depositary receipts (ADRs).
Investors remain cautious ahead of earnings season kicking off next week, with reports from big U.S. banks set to begin the second-quarter earnings season. Analysts are expecting S&P 500 earnings to surge 24% from a year earlier, with technology companies driving much of the growth, according to LSEG I/B/E/S. "This is a high-bar quarter with a narrow margin of error," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota. "The banks will give us a good read on the underlying economic strength and what consumers and businesses are doing." Thanks to increased corporate profit estimates, the S&P 500 is trading at about 20 times expected earnings, down from an earnings multiple of 21 in late May, even though the benchmark is trading near record highs. Next week's June inflation data will offer fresh insight into the Fed's likely monetary policy path, while Fed Chair Kevin Warsh is also scheduled to testify before the House Committee on Financial Services.
